Here’s How Ripple and Bitso Will Use XRP to Coordinate Cross-Border Transactions

Ripple’s recent announcement of its partnership with Bitso has brought fresh focus to how XRP has already been deployed to facilitate cross-border transactions between the United States and Mexico.

As Ripple moves to integrate Bitso’s MXN-backed stablecoin, MXNB, into its Payments on DEX infrastructure, crypto researcher SMQKE pointed to a previous explanation detailing the mechanics behind XRP-powered remittance flows and the efficiency gains they delivered.

In a commentary on X, SMQKE shared a video clip alongside the message, “This is how Ripple and Bitso will use XRP to coordinate cross-border transactions between the U.S. and Mexico. Listen closely.” The researcher referenced the video in response to Ripple’s announcement that MXNB will be issued on the XRP Ledger and integrated into the company’s enterprise payments framework.

Ripple stated that the collaboration with Bitso will bring regulated U.S. dollar and Mexican peso liquidity to the XRPL Permissioned DEX through RLUSD and MXNB. According to the company, the initiative aims to support real-world enterprise payment flows across Latin America.

Video Explains the Role of XRP in Cross-Border Transfers

The video shared by SMQKE explains how Ripple coordinated relationships with digital asset exchanges on both sides of a transaction to support money transfers from the United States to Mexico.

According to the speaker, a Texas-based money service business called Qualix serves Mexican workers sending funds to relatives in Mexico. Rather than requiring Qualix to hold XRP directly, Ripple arranged partnerships with exchanges that absorb the digital asset exposure. In the example provided, Bitstamp operates on the U.S. side while Bitso handles the Mexican side.

The speaker explained that these exchanges are responsible for setting rates and managing the associated market risks. This structure allows financial institutions to avoid maintaining XRP holdings while still benefiting from the speed and efficiency offered by the digital asset.

Transfers Reduced From Days to Minutes

Under the process described in the video, a customer instructs Bitstamp to send a specified amount of dollars to Mexico. Bitstamp converts the funds at the prevailing market rate and transfers value across the XRP Ledger. Bitso then converts the received XRP into Mexican pesos and distributes the funds through local banking rails to the recipient’s account.

The speaker stated that the transfer across the XRP Ledger takes approximately eight seconds. Although banking processes on both ends add time, the complete transaction reportedly takes around ten minutes. The same process previously required roughly three days.

The speaker also noted that users saw costs approximately 20 basis points lower than traditional alternatives, even after accounting for foreign exchange fluctuations.

SMQKE’s comment came as Ripple and Bitso announced plans to deepen their partnership by introducing regulated stablecoin liquidity on the XRPL Permissioned DEX. This is a development that the companies say will help expand enterprise payment capabilities across Latin America.

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